WHOOPS! I Sent the newsletter yesterday, but it was August's newsletter again. Here is the new one for this month!

August is typically a quieter month for our local real estate market, and this year was no exception. With only 942 sales across all residential property types, August 2024 recorded the second fewest sales of any month this year, just behind January. Sales were down 13% compared to July 2024, 15% lower than August 2023, and a significant 30% below the 10-year average for August.

Not only did sales dip, but new listings also declined, showing a 21% decrease compared to last month. However, new listings were up 7% from August 2023 and 10% above the 10-year average for August. This has been a recurring trend: new listings remain fairly typical, but sales continue to lag.
Total inventory numbers also declined by 1% compared to last month, but are up 37% higher than one year ago.

Total inventory saw a slight 1% decrease compared to July, but it's up 37% from one year ago. At first glance, this might seem puzzling—how can higher-than-average new listings and lower-than-average sales result in decreased inventory? Well, 1,133 homes that were for sale in August 2024 were either taken off the market or expired. This often-overlooked statistic explains a lot of statistical gaps in our market.

Looking closer at the numbers, we might be approaching a buyer’s market. Only 14 out of every 100 homes listed actually sold in August, inching towards the 12/100 threshold that defines a buyer’s market. The Fraser Valley Real Estate Board classifies a buyer’s market as 12/100 or fewer sales, a balanced market as 12-20/100, and a seller’s market as 20+/100. While we’re still in a balanced market overall, detached homes fell into buyer’s market territory with only 11/100 homes selling in August. Condos and townhomes slipped into balanced market territory, with 15/100 condos and 19/100 townhomes selling.
A true buyer’s market often coincides with falling prices. While prices technically dropped by 0.3% from month to month, the market doesn’t quite feel like a buyer’s market yet. In my daily dealings, things seem more balanced.

So, when will activity pick up? September is typically more active than August, so we should see more sales this month. Additionally, the Bank of Canada’s third consecutive interest rate decrease on September 4 might give the market a boost heading into fall. However, we’re not likely to see the market heat up to the point where multiple offers become the norm again—at least not for a while. Unless interest rates drop significantly, we won’t be breaking any sales records in the near future.

Depending on how much interest rates continue to come down, we may see a more typical spring in 2025 than we saw in 2024, as we know that there is certainly a pent up demand from buyer’s who are simply waiting for lower interest rates and more affordability.

Looking ahead to 2025, we may see a more typical spring market compared to 2024. There's a clear pent-up demand from buyers who are waiting for lower interest rates and greater affordability.

But the big question remains: If interest rates continue to drop, will prices rise? Historically, the answer is yes. Lower rates mean buyers can afford more, which leads to increased competition and higher prices. If that happens, is waiting really the smartest financial decision? It may actually make more sense to buy now, while prices are lower, even with higher interest rates. The equity you build by buying now will likely outweigh the benefit of lower monthly payments with a higher purchase price a year from now.

If you're looking to sell and aren’t in a rush, waiting might still be the best option. Prices and demand will eventually rise, meaning more money in your pocket and a quicker sale. The only uncertainty is when prices will increase.

Ultimately, the best time to make a move is when it aligns with your lifestyle. Now could be a great time to do so! Reach out today, and we can start planning for whenever you're ready to take the next step.